National Association of Electrical Distributors
Becky Burgess
rburgess@naed.org
314-991-9000 ext 301

NAED budgeted $10,000 for attrition for their annual meeting in May of 2003. The Association ended up being charged $25,000. NAED was proactive in trying to avoid attrition by sending letters to the attendees prior to the meeting explaining the “Top 10 Reasons to Stay” on site. The letter explained that if the association did not fill the block they would face financial penalties. It also promoted the amenities of the hotel. Ms. Burgess’ records indicate 14% of the people attending the conference stayed outside the block. Hotel occupancy was only at 55%, therefore NAED had to pay attrition.

In 2002 at the NAED annual meeting in Chicago, Ms. Burgess was able to avoid paying attrition because the hotel had problems producing exact reports of what the Association owed. In Chicago, NAED’s reports indicate 25 % of attendees stayed outside the block.

Ms. Burgess has proposed to the Association that they should charge more for registration for those who stay outside the block, or discount those who stay inside the block. NAED’s board feels many members are struggling due to 9/11 and the downturn in the economy, and do not want to implement such procedures. They would rather have the attendees, even if they stay outside the block thereby hurting the Association. NAED can make other concessions in the program, such as cutting back on speaker salaries or food and beverage to offset attrition charges. Attendance in the past two years has been down 30% each year, and the Association is working hard to get attendance back up, and they really don’t want to cut the program.

The solution: In anticipation of low room pick up, Ms. Burgess has reduced all future room blocks up to 2007 by 30% in order not to pay attrition. Numbers indicate a 30 % drop in both 2001 and 2002 in attendance attributed to 9/11 and the economy.

Here is the letter Ms. Burgess sent to her attendees prior to her annual meeting:

The Top 10 Reasons to Stay at the Convention-Contracted Hotel
For NAED’s 2003 Annual Meeting

10) In order to secure the convention-contracted hotel for NAED’s Annual Meeting, NAED had to sign a contract for a block of guest rooms. If the association does not fill its room block, financial penalties will be due to the hotel. This ultimately impacts the fiscal health of NAED.

9) Guest room usage helps NAED secure meeting space. NAED’s education program continues to grow, bringing you a wide variety of professional speakers and industry experts.

8) You can keep up with email communication while you’re away in one of the hotel’s guest rooms designed specifically for business travelers.

7) You will keep up with your business partners throughout an immense atrium lobby serviced by bullet elevators – the quickest of rides to/from your meetings rooms.

6) The hotel is located just a short 12 miles from Hartsfield Intl. Airport in the heart of downtown Atlanta where 80% of the population is within a 2-hour flight.

5) You can exercise at the hotel’s fully equipped health club featuring steam rooms, sauna and an indoor/outdoor pool.

4) The hotel is conveniently located in close proximity to the Philips Arena, Georgia World Congress Center, the Atlanta Civic Center, CNN Center, the World of Coca Cola, the Georgia Dome and the Apparel, Gift and Merchandise Marts.

3) You can enjoy the wonderful restaurants featured inside the hotel (list the restaurants by name).

2) You can take advantage of the early morning sessions with continental breakfast vs. trying to catch a cab or fight rush hour traffic.

1) You are only a short elevator ride away from the most unique product and technology expo in the industry!